TNAG-2468-FCO40-3592-Most-favoured-nation-status-for-China-Hong-Kong-interests-1992 — Page 247

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INFO ROUTINE PEKING, WASHINGTON, BTC HONG KONG, DTI

WASHINGTON TELNO 77: U S/CHINA: INTELLECTUAL PROPERTY TRADE

DISPUTE: EFFECT ON HONG KONG

1. THE SECRETARY FOR TRADE AND INDUSTRY AND THE POLITICAL ADVISER SPOKE TO NCNA ON 14 JANUARY TO REGISTER OUR CONCERN AT

THE EFFECT OF ANY SPIRAL OF RETALIATION AND COUNTER-RETALIATION

ON HONG KONG.

2.

CHAU SAID WE APPRECIATED THAT THE TRADE DISPUTE WAS A MATTER

FOR CHINA AND THE US TO RESOLVE. IT WAS NOT OUR INTENTION TO

INTERFERE. BUT SHOULD THE TALKS BREAK DOWN AND THERE BE RETALIATION AND COUNTER-RETALIATION, THERE WOULD BE SERIOUS ECONOMIC CONSEQUENCES FOR HONG KONG, BOTH IN TERMS OF IMMEDIATE TRADE AND IN TERMS OF FUTURE INVESTMENT. WE HOPED THE CHINESE AUTHORITIES WOULD TAKE FULLY INTO ACCOUNT HONG KONG'S INTERESTS.

3. EHRMAN ADDED THAT WE WERE NOT TAKING SIDES. WE HAD REMINDED

THE US ALSO OF OUR CONCERNS ON 13 JANUARY.

4.

CHEN RONGCHUN, HEAD OF THE FOREIGN AFFAIRS DEPARTMENT OF NCNA, AND CHEN KEQIANG, HEAD OF THE ECONOMIC AFFAIRS DEPARTMENT, SAID THAT THEY WOULD REPORT OUR CONCERNS TO PEKING. WE HAD A COMMON INTEREST TO SEE A RESOLUTION OF THE TRADE DISPUTE. MADAM WU YI, LEADER OF THE CHINESE DELEGATION, HAD STATED PUBLICLY IN WASHINGTON ON 13 JANUARY THAT HONG KONG'S INTERESTS WOULD BE

TAKEN INTO ACCOUNT.

WILSON

YYYY

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